Tax accounting is one of the more trusted professions. Every year people gather tax information then go to a trusted source for tax service. The problem is people may be receiving inferior tax service and do not realize it. Most people find out the hard way. A year to two after the tax return was filed, they get an IRS tax bill. The IRS found a mistake made by your accountant.
Accountants can take aggressive positions on your tax return and you may not know it for years. It may take the IRS several years to select your return for IRS Tax Audit.
The IRS is starting to get smarter on aggressive tax preparation practices. Most returns are electronically filed. The returns are then examined by a computer program. The computer program will compare numbers on the tax return to third party sources. For example, does the wages reported on the tax return match the W-2 submitted to the IRS by your employer. The computer will look for numbers on the tax return not supported by third party documentation. The computer will then generate an automatic letter to you requesting proof. If you do not have proof, the IRS will adjust your return and send you a large tax bill.
It may take the IRS 1 to 2 years before you are notified of a possible issue on your tax return. If you received poor tax service, you will know it. You will not have any idea where the accountant came up with the numbers reported on the tax return.
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